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Section 84: Qualifications for appointment of Chairperson and Members of State Commission

Electricity Act • Official Statutory Text & Practice Guide

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Act 2003
Section 83 All 185 Sections of Electricity Act Section 85

Legal Commentary & Landmark Judgments: Section 84

Section 84 of the Act prescribes the qualifications for appointment of the Chairperson and Members of the State Commission, requiring proven expertise in power engineering, finance, commerce, economics, or law.

  • Multi-Disciplinary Expertise Requirements: Requires appointees to be persons of ability, integrity, and standing with specialized knowledge in engineering, finance, economics, law, or management.
  • Judicial Member Mandatory Requirement: Following Supreme Court jurisprudence, mandates that at least one member must possess judicial qualifications (former High Court Judge or District Judge) to preside over adjudicatory matters.
  • Statutory Bar on Conflicting Commercial Holdings: Disqualifies anyone holding commercial shares or active business interests in state power utilities, ensuring regulatory neutrality.
Key Landmark Precedents:
  • State of Gujarat v. Utility Users' Welfare Association (2018) 6 SCC 21: Landmark ruling: Supreme Court held that the appointment of a judicial member is mandatory in every State Electricity Regulatory Commission to satisfy the requirements of Article 14 and judicial independence.
  • Brihanmumbai Electric Supply v. MERC (2013) 4 SCC 71: Supreme Court affirmed that high qualifications of Commission members ensure technically sound and economically sustainable tariff orders.
  • West Bengal Electricity Regulatory Commission v. CESC Ltd. (2002) 8 SCC 715: Affirmed that expert qualifications are essential for balancing consumer and utility interests.
Courtroom Practice & Strategic Litigation Guidance:

When litigating complex regulatory disputes involving contractual breach or penalty imposition before a State Commission, ensure the bench includes the Judicial Member appointed in compliance with Utility Users' Welfare Association.

Section 83 All 185 Sections of Electricity Act Section 85